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Guoco Group Ltd (0053) Fair Value & Analysis

Industrials · HK · Market cap HK$22.0B (≈ $2.8B) · ISIN BMG420981224

What is Guoco Group Ltd really worth?

GG Guoco Group Ltd 0053 · HK
PriceHK$72.00
Fair ValueHK$32.77
Upside−54.5%
Quality65/100

A solid business, but trading 120% above our fair value of HK$32.77.

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Strengths

Healthy Growth (revenue 5y +10.5 %/yr)
Solidly profitable · 18.2% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Narrow moat 42/100
!Weak on past: 20 out of 100

For context

·5.00% dividend yield
Evidence: High Range HK$24.58 – HK$40.96

Fair value as of: Aug 13, 2026

From 12 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from HK$26.53 to HK$32.77 (+23.5%) since Aug 2, 2026. Share price +1.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (HK$40.96). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

HK$105.37 HK$46.67 Fair Value HK$32.77 Nov 2019 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$46.67 – HK$105.37 · fair‑value band HK$24.58 – HK$40.96 · the HK$72.00 price screens above the HK$32.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Guoco Group Ltd (0053) currently trades at HK$72.00, while our model-based Fair Value estimate is HK$32.77, implying the stock looks roughly 119.7% overvalued today. The Quality Score stands at 65/100 (solid quality), in the Industrials sector. Bull case: the Growth DCF group reads highest at a median of HK$326.75 per share, and 4 of the 12 models we run sit above the HK$72.00 price. Bear case: the Earnings-Based group reads lowest at HK$15.85, and 8 of the 12 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Guoco Group Ltd generated revenue of HK$3.0B at a net margin of 18.2%. Revenue declined 7.4% year over year. It earns a return on equity of 5.1%. Net debt stands at HK$2.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$24.58 (bear case) to HK$40.96 (bull case); at HK$72.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 6% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 11% fair-value upside, at −54%, 0053 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly HK$0.6800 per share, which is 2.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$193.40 HK$326.75 HK$545.81 76
Residual Income HK$21.13 HK$21.95 HK$22.27 76
Owner Earnings HK$51.75 HK$90.14 HK$154.21 74
All 12 models by family
DCF Models
Owner Earnings HK$51.75 HK$90.14 HK$154.21 74
5Y P/E Exit HK$77.82 HK$103.38 HK$129.23 72
10Y P/E Exit HK$115.95 HK$151.13 HK$193.41 65
Earnings-Based
Graham-Dodd HK$10.61 HK$43.97 HK$59.93 64
Lynch FV HK$11.10 HK$15.85 HK$20.61 61
Dividend Discount
Gordon GGM HK$29.98 HK$62.34 HK$98.90 66
DDM Multi-Stage HK$29.98 HK$52.57 HK$65.43 66
Multiples
P/E Multiple HK$24.58 HK$32.77 HK$40.96 63
P/B Multiple HK$19.90 HK$26.53 HK$33.16 55
Asset-Based
NCAV (Graham) HK$13.30 HK$17.82 HK$26.60 54
Growth DCF
Growth DCF HK$193.40 HK$326.75 HK$545.81 76
Economic Profit
Residual Income HK$21.13 HK$21.95 HK$22.27 76

Widest divergence: Growth DCF (HK$326.75) versus Earnings-Based (HK$15.85). Highest evidence: Growth DCF (76).

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Key figures & financial health

P/E ratio 5.1 as of Jul 1, 2026
P/S ratio 0.84 P/E × margin
EPS (TTM) HK$4.28 price ÷ EPS = P/E 5.1
Dividend yield 5.0% payout 84.1%
Net margin 16.5% FY2025
Return on equity 5.1% TTM
More key figures
Profitability
Return on assets (EBIT) 1.0% avg 5y
Operating margin 10.2% TTM
Growth
Revenue (TTM) HK$3.0B TTM
Revenue growth (YoY) −7.4% 3y avg +17.9%
EPS growth (YoY) +12.9%
Balance sheet & cash flow
Free cash flow HK$5.2B FY2025
Net debt HK$2.9B FY2025 · ≈ 0.6 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 64 · Market factors (momentum, volatility) 60

Profitability 29
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Guoco Group Limited, an investment holding company, engages in the principal investment, property development and investment, hospitality and leisure, and financial service businesses.

Full company description

Guoco Group Limited, an investment holding company, engages in the principal investment, property development and investment, hospitality and leisure, and financial service businesses. The company offers debt, equity, and direct investments; treasury operations; and investment advisory and management services with trading and strategic investments in global capital markets. It also develops residential and commercial properties; holds properties for rental; owns, leases, or manages hotels under the Clermont and Thistle brands; operates gaming and leisure businesses; and holds casino and other gaming licences, and concession. In addition, the company provides commercial, consumer, Islamic, and investment banking services; and life and general insurance, Takaful insurance, fund management and unit trust, corporate advisory, and stock broking services. Further, it offers royalty entitlement of Bass Strait's oil and gas production; manufactures, markets, and distributes health products; operates car parks and oil palm estate; owns hotel assets; develops and maintains online gaming software; distributes limited risks; processes credit transfers; provides general management, property management and maintenance, marketing, consultancy, and training services, as well as support services for interactive gaming; and engages in investment trading, social club, apiculture, and financing and securities investment activities. It operates in Hong Kong, Mainland China, the United Kingdom, Continental Europe, Singapore, Australasia, and internationally. The company was incorporated in 1990 and is based in Central, Hong Kong. Guoco Group Limited operates as a subsidiary of Guoline Overseas Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guoco Group Ltd reported revenue of HK$3.1B in FY2025 versus HK$1.3B in FY2021, a compound +23.9%/yr. Reported net income was HK$513M in FY2025, compounding +12.4%/yr from FY2021.

Growth Quality 87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$3.1B
Latest YoY
+7.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.4% (6.4 + 5.0)
Revenue +23.9%/yr
FY21 HK$1.3B
FY22 HK$1.9B
FY23 HK$2.5B
FY24 HK$2.9B
FY25 HK$3.1B
Net income +12.4%/yr
FY21 HK$322M
FY22 HK$250M
FY23 HK$439M
FY24 HK$459M
FY25 HK$513M
Character of growth · EPS growth decomposed (2014-2025) −2.3 % p.a.
Revenue per share +1.0 %

of which total revenue +1.0 % · buybacks/dilution +0.0 %

EBIT margin −5.1 %
Tax rate +0.4 %
Residual (interest, one-offs) +1.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

0053 screens 120% overvalued. Compare with ITOCHU Corporation →

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Cite: Fair Value Calculator (2026). "Guoco Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/0053

Peer Group

Conglomerates · 375 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside −55% · Bottom 25%
Return on equity (TTM) 5% · Above median
Return on assets 1% · Below median
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth −7% · Bottom 25%
Dividend yield (TTM) 5.0% · Top 25%
Debt / equity 0.42× · Higher than median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 5.1× · Cheaper than 75% of peers
P/B 0.32× · Cheaper than median
P/S (TTM) 0.94× · Pricier than median
P/FCF 0.5× · Cheaper than median
EV/EBITDA 7.5× · Pricier than median
PEG 1.17× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 23
FUTURE0 · sector 17
PAST20 · sector 17
HEALTH79 · sector 89
DIVIDEND100 · sector 42

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Guoco Group Ltd (0053) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$32.77 versus a price of HK$72.00, about −54% upside (overvalued).
What is the fair value of 0053?
Our model-based fair value for Guoco Group Ltd is HK$32.77 (as of Aug 13, 2026), built from audited fundamentals. The current price: HK$72.00.
What is the quality score of 0053?
Guoco Group Ltd has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Guoco Group Ltd (0053)?
Guoco Group Ltd reported trailing-twelve-month revenue of about HK$3.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0053?
The net profit margin of Guoco Group Ltd is about 18.2%, meaning it keeps roughly 18.2% of revenue as net income. Based on the latest reported figures.
Does Guoco Group Ltd pay a dividend?
Guoco Group Ltd currently shows a dividend yield of about 5.00% relative to its recent price (as of Aug 13, 2026).
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